Posted on 06/25/2024 2:41:33 PM PDT by conservative98
I’m not sure it’s the law that tips be counted as wages or whether it is just IRS policy. If policy, the IRS can reclassify tips as gifts without a change in the law.
I could stand corrected on this but I think in France the tip is basically “included” in the menu price - at least for restaurants. It’s a flat 15%. The restaurants pay it out to the workers. Probably should still tip for hotel valets and the like.
Every action has consequences and the consequences of this will not be good for everyone who does not receive their income through tips. Does anyone even stop to think about this stuff logically. So if someone makes 60,000 a year in tips then they don’t have to pay taxes on it. If anyone else does then they get taxed. And those taxes are going to increase for everyone else because of this. The government will raise the income tax on everyone else to make up for it.
"All cash and non-cash tips an received by an employee are income and are subject to Federal income taxes. All cash tips received by an employee in any calendar month are subject to social security and Medicare taxes and must be reported to the employer."
https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
Still doesn’t say if it’s federal code or administrative rule. I truly don’t know.
What is and what should be are two different things. Money grabbers like irs want toilet flushes to be taxable.
Trump has the right idea.
Let’s eliminate the IRS within Trump’s campaign promise and MAGA voters mandate to Obliterate the Deep State
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